Confronted with the drastic market competition, China Post, in order to meet the market demands in booming areas, initiated Changjiang River Delta EMS Next Morning Delivery service in Shanghai, Jiangsu and Zhejiang Province on July 1, 2002 and formulated the relevant operation and clearance rules. Since the establishment, this service has maintained a good momentum, which has promoted both the competitive ability of EMS and the satisfactory degree of the customers towards the delivery speed.

Operate telecom services on commission
China Post has looked on the commissioned telecom services as an important part of the total operation and has enhanced the cooperation and operation scope with many large telecom providers like China Unicom and Telecom on a number of commissioned services such as distributing bills, collecting telephone fee, vending telephone cards and numbers and quasi virtual telecom operation on the ground of mutual complementation and common development.

In 2002, China Post had its commission revenue reach 1.232 billion yuan, 1.045 billion yuan of which is from telecom services, an increase of 109.62% over last year. The commissioned Unicom services turned out a revenue of 164 million yuan, 15.69% in proportion to the total telecom services, representing an increase of 37.82% over last year. We have hunt 2,964,500 users for China Unicom, increasing 63.49% than last year, among which 2,554,700 users bought the GSM numbers, up 40.87% over last year; 409,800 users bought the CDMA133 numbers, 136.59% more than the planned volume; 355,100 users registered in Tel 193, 41% over last year. Generally speaking, the development of the commissioned telecom services has gained a good momentum and given a big impetus to the advancement of other postal services.

Letter mail service
As an important indicator to assess the Post development, letter mail is the reserved and core business of the Post. The State Post Bureau of China called out to promote the market exploration and to keep it developing in a sustainable, sound and sweeping way. We set the target to break through 10 billion letters in 2002, 50% of which was business letters. The common efforts made by the post administrations at all levels have gained great achievements. In 2002, the operation of all kinds of letter services made rapid progress and the structure of the letter mail service was adjusted fundamentally.

From January to December, the national letter mail traffic reached 10.61 billion pieces, up 22% from last year; the accumulated turnover reached 5.434 billion yuan, 8.54% more than last year. 49% over last year, the traffic of business letters was up to 1.635 billion pieces, constituting 15.42% of the total letter mail traffic, among which the volume of bills reached 539 million pieces, an increase of 26.4% over last year. The volume of delivered advertisement was 4.158 billion pieces, increasing 57.4% and constituting 39.2% of the total traffic of the letter mail service, among which the volume of China Post Direct Delivery Advertisement was 1.549 billion pieces, increasing 82%. The volume of the pre-paid advertising postcards accumulated 394 million pieces, increasing 0.5%.

Regarding the restructuring of the letter mail service, as the volume of the traditional normal letters decreased constantly, the proportion of business letters increased continually in the domestic letter service. It climbed up from the 20% in 1999, 30% in 2000, 43% in 2001 to 54.6% in 2002, among which the direct mail occupied 15.4% and the delivered advertisement occupied 39.2%.

Parcel service
From January to December, the total volume of the national parcel service accumulated 105.545 million pieces, representing an increase of 6.4% over last year. The turnover of the parcel service accumulated 2.096 billion yuan, 14.29% over last year. The operation of express parcel service made rapid advancement this year with the traffic and turnover growing each month. From January to December, the volume of the express parcel service accumulated 22.564 million pieces, 21.4% of the total parcel service traffic; the turnover accumulated 468 million yuan, representing a proportion of 22.3% of the total parcel service revenue. The parcel volume of October, November and December has gained the most prominent increase by quadrupling the volume of the last same three months respectively. The proportion of the express parcel service has increased greatly from 3.91% in 2001 to 21% this year, representing an increase of over 17%.

Subscription of Newspapers and Periodicals
In 2002, regarding development as the core task, the post administrations at all levels improved the service level, operation quality and computerization, and maintained a sustainable and sound development in the subscription of newspapers and periodicals. In 2002, China Post altogether distributed 7374 kinds of newspapers and periodicals at the circulation of 18.357 billion copies with the year-round revenue up to 5.658 billion yuan, among which the retail business revenue fulfilled 1.765 billion yuan, up 7.56% over last year; revenue from postal books an audio-visual products reached 277 million yuan, gaining a good momentum.

Confronted with the drastic market competition, the Post maintained the status as the main channel of the subscription of newspapers and periodicals in 2002. In 2003, we altogether accepted 7901 kinds of newspapers and periodicals, up 527 over last year. We try to publicize the experience of Shanghai Oriental Books & Newspapers and Periodicals Company by promoting the construction of postal kiosks, establishing regional distribution centers and networks and speeding up the delivery. By effectively accelerating the distribution of newspapers and periodicals, we give great impetus to the development of the retail business by increasing the accelerated categories from 76 to 158.

In 2002, we made great progress in building the application system of the postal comprehensive network. We replaced the old data transmission system smoothly, which brought about a high accuracy and efficiency in the network communication.

Service quality of the postal communication
In 2002, the State Post Bureau of China persisted in serving the customers, caring the customers and fulfilling the universal postal service obligation earnestly. We have solved the hotspots and difficulties successfully, promoted the service standard, adapted to the environment of social and economic development, met the demands of the people and increased the satisfactory degree of the customers. The degree increased from 84.39 in 2001 to 84.73 in 2002. China Post has mainly taken a series of measures as follows:
1. Simplify the transaction process
2. Diversify the service category
3. Personalize the big customers
4. Standardize the window operation
5. Socialize the service supervision
6. Standardize the postal facilities
7. Improve competitive service level